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Firms demand incentives to go low carbon

SOME of the biggest names in British business are ready to revolt against what they claim is a failure of the government's low-carbon policies.

A report to be published soon will call on Ed Miliband, the energy and climate change secretary, to introduce firm prices for carbon, extra tax breaks and a raft of other incentives, including better capital allowances for green technology investment.

The report, tentatively titled Lessons from UK Climate Policy, is being prepared by a loose coalition of businesses and pro-business lobby groups, representing all sectors of industry from manufacturing to finance.

It is likely to come as an embarrassment to the government, which this month published its eagerly awaited low-carbon transition strategy. Ministers said it would pave the way for a new era of investment, creating 400,000 jobs in green industries. Members of the coalition, however, say the strategy falls short.